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Larkspur Inc. issued $ 5 , 5 5 0 , 0 0 0 of convertible 5 - year bonds on July 1 , 2 0

Larkspur Inc. issued $5,550,000 of convertible 5-year bonds on July 1,2025. The bonds provide for 6% interest payable
semiannually on January 1 and July 1. The discount in connection with the issue was $117,000, which is being
amortized monthly on a straight-line basis.
The bonds are convertible after one year into 15 shares of Larkspur Inc.'s $1 par value common stock for each $1,000 of
bonds.
On October 1,2026, $666,000 of bonds were turned in for conversion into common stock. Interest has been accrued
monthly and paid as due. At the time of conversion, any accrued interest on bonds being converted is paid in cash.
Prepare the journal entries to record the conversion, amortization, and interest in connection with the bonds as of the
following dates. (Credit account titles are automatically indented when amount is entered. Do not
indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the
amounts. List all debit entries before credit entries.)
(a) October 1,2026.(Assume the book value method is used.)
(b) October 31,2026.
(c) December 31,2026, including closing entries for end-of-year.
*Answer for Interest payable Oct 1,2026 is not 3330
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